The Richman Group Affordable Housing Corp. announced it will raise $474 million in three separate transactions that will close before the end of the year.
The firm, a leading low-income housing tax credit syndicator, estimates total equity commitments of $240 million for its USA Institutional Tax Credit Fund 98, a diversified portfolio of more than 30 properties in 21 states and U.S. territories. The fund’s 12 institutional investors include leading insurance companies and banks.
Richman will also close USA Institutional Tax Credit Fund 100, which will have geographically targeted acquisitions and ultimately $121 million in equity from several bank investors.
The third transaction is a proprietary fund with a single insurance company investing $113 million in a diverse pool of assets.
The properties that will be acquired by these funds will provide high-quality affordable housing for families, seniors, and special-needs tenants and will add almost 6,000 units to Richman's portfolio of more than 100,000 units.
"Fund 98 will be a nationally diversified fund while Fund 100's acquisitions will target properties in New York City,” says Stephen M. Daley, executive vice president. “The insurance company proprietary fund includes a large investment in a single property with both affordable and historic tax credits as well as other interests. With this recent activity, combined with the equity raised for other funds throughout the year, Richman will raise over $700 million in equity in 2014."
In addition to being one of the largest sponsors of affordable housing tax credit funds, Richman is also a leading developer of affordable, market-rate and luxury rental housing, an asset and property manager, and a mortgage lender. Richman and its affiliates have developed more than 20,000 residential units, provide asset management services to more than a 100 public, private, and institutional investment funds which own more than 100,000 housing units and have in excess of $10 billion in capital under management.